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Mad Money

News/Business. (2013)

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01:00:00

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Virtual Ch. 58 (CNBC)

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480

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Mccormick 18, Jim 12, Cramer 9, Timken 8, Us 5, Hain 5, Maryland 5, China 5, S&p 4, Florida 4, Caterpillar 4, Illinois 4, Barron 4, Kathy 3, Sandy 3, Aflac 3, Espn 3, Mastercard 3, Uk 3, Goldman Sachs 3,
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  CNBC    Mad Money    News/Business.  (2013)  

    February 6, 2013
    11:00 - 11:59pm EST  

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more "likes." more tweets. so, beginning today, my son brock and his whole team will be our new senior social media strategists. any questions? since we make radiator valves wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes." i don't have the door code. who's that? he won a contest online to be ceo for the day. how am i supposed to run a business here without an office?! [ male announcer ] fast, reliable deliveries worldwide.
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fedex.
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i knew every piece of information that came public could produce another piece of information that could make me a better investor, better trader and make me some quick money or keep me from selling or buying something i shouldn't, or keep me in a stock that i needed to stay in. it's something i write about every day as part of that service i talk about all the time, the actionalertsplus.com, tells you what investments i'm going to make before i make them. and tonight i'm going to show you how you can do it exactly the same at home.
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and just to be clear, my sources are the same sources as your sources. the publicly traded documents, the conference calls, and the interviews here on "mad money." so let's deal with the meat and potatoes of the day, starting with the information released at the close of trading because that's when my thought process of a day begins. and we're going to talk about yesterday after the close. first, we get hit with the earnings news from the walt disney corporation. nothing you hear about disney that you didn't hear already in the release. but in the conference call, oh, boy, there was a little gem that could've made you a fortune in one day. the ceo, bob iger's incredible endorsement of netflix as a preferred way to distribute old content. as i listened, i realized that iger needed to figure out how to monetize older properties on the web, not just an old-fashioned hard copy video. he found netflix to be the ideal partner. that's why i suggested that
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people buy netflix at the opening of trading. bingo, goes to $184, and now you are free to ring the register if you want to. next stop, we see after hours announcement, 3m boosted its dividend by 7.6%, $7.5 billion buyback. hit with a spate of downgrades and ho hum reports. analysts have not been championing it. expect nothing exciting from this long-term underperformer. but this news gave you much more than what the analysts were anticipating. they haven't been focusing on the new products like i have because they aren't as intrigued as i am about the new chief executive who has been ceo for almost a year now. he's not a promoter, he's an operator. i file the 3m story away, see if the complacency about good news lasts until the opening. actually opens down. nobody seems to care, that news is too good for people not to care all day. and you had a terrific opportunity to make quick cash or buy more. one of the most innovative
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companies in american history. finished up $1.50 above where it started. okay. so unfortunately, look, not everything is actionable. it's not. some things are just educational. we did two interviews on last night's "mad money." the first one was not actionable. the first one was sandy cutler. didn't produce anything you could act on because the stock had run up a couple of bucks. he did mention that china's getting better. we've got to file that away for the next opportunity to play china. david pyatt, total gold rush. you see, he explained to us that allergan has not just one new drug, but the possibility of a second blockbuster, an inhaled migraine fighter that his company now owns 100% of thanks to the pending purchase of mac pharmaceuticals. well, the interview broke no news, kind of like, you know, breaking news thing, it did produce something i felt that was better. a more pertinent impression,
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which was that pyatt's allergan's ever conservative ceo. always really conservative. when i said if i read the tea leaves right, the fact he guided analysts higher, not lower this time meant he was more bullish than usual. his readiness to agree with that. this is a conservative guy. the readiness gave you a fabulous trade. allergan went to 108 1/2 as it should have. you can hold on to up here, but $1.50 is a good day's work, depending on how much capital you put to work. while i was doing interviews, you got news out of chipotle. seemed like a not so hot less than 4% same-store sales. we used to get double-digit same store sales. you know i've been waiting for chipotle to increase the prices on its menus, they haven't. the salsa, yeah, they had to move west coast salsa to east. and if you took time to listen to the conference call, you knew they can take a price increase now and would most likely do so this year and they are not worried about the consequences because people will stick with
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them. the uninformed goofus dumps the stock where it opens. the informed gallant buys it there. yes, it was that easy. as long as you knew the metric that chipotle had the ability to put through price increases for its delicious, healthier burritos and salads. thank you for that tofu salad, now my kids will like everything on the menu. now, sometimes you can use your homework to justify and understand the market. even though you may not be able to make money until a later occasion. case in point, the disappointing numbers, allegedly, quote, from cummings, the big engine maker. it came out this morning, a guide down. wow, you would have figured -- don't all guide downs ding the stock? if you follow the information about caterpillar, you knew that cummins would go higher on the news just as caterpillar did because people are so bullish about the second half of the year. sure enough, cummins opens up big and stays up. that's okay.
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well, because -- and the reason it's okay, there's another analog to the analog and that's timken. cummins went up today but timken didn't. people didn't put two and two together. those who do watch the show bought timken when it was down in the morning and made a quick buck and a quarter when the slowpokes figured it all out. sometimes stocks open up so much, they won't let you in at all. that's okay. i was salivating at the possibility of recommending buying some biogen when it bought out elan this morning. and we had just talked about that with the ceo. at the time we pushed the stock hard because dr. scangos told us they would be able to screen out those with potentially fatal side effects from the drug. biogen was a sell the news story today because it opened up eight points and closed out $3.52.
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how about wyndham? the hotel chain and time share play known for its incredible buyback and huge dividend boost. sure enough, gives you both this morning in a release before the opening, and it opens up less than a dollar. that was insane. i said so as much in my portion of "squawk on the street." that's ridiculous. potential investors came to their senses and you made three bucks, three bucks in the afternoon. look, i'm not saying every day's like this, but the bottom line is that i'm saying if you put the news to work for you, really work it, including doing the homework, watching the show closely, and "squawk on the street," by the way, you can try to make money from a standing start each day. compelling? yes. when you ask yourself how much money did you make at work today? i bet you unless you're the ceo of one of these companies or a rock star or pro athlete, it was a heck of a lot less. sheila in maryland, sheila. >> caller: hey, jim, i'm excited to speak with you.
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>> congratulations on the ravens win. maryland, ravens, go. >> caller: thank you. b.i.d. reported 10% down in their stocks. should i sell or hold? >> actually, normally i would say you should sell because i don't trust the chinese stocks. but right now a rising tide is lifting all boats and bidu should be held. they don't have google in china. joey in florida. >> caller: boo-yah, jim, from a street.com summer internship hopeful. >> i like that. a lot of interns over time. great to have you. what's up? >> caller: what are your thoughts on lifetime fitness? should it be on probation for a quarter or two? >> sometimes you've got to go. those @jimcramer on twitter know this. you've got to go to the source of the stuff. the lifetime member that is my daughter who says that equinox is now competitive. here's what i know about lifetime, that was not a good guidance quarter. it just wasn't. and i -- they are indeed, i
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think you're right. penalty box is right. and it's -- but it's a major penalty, not a minor penalty. opportunity abounds in this market, you've got to put the homework to work, put that tape to work. work it for you, not against you. massage it, figure it out, put the money down, take it out. you can do it. "mad money" will be right back. coming up -- meal ticket? hungry for the next hot stock? it could be hiding in your grocer's aisle. hain celestial is leading the charge in the fast-growing organics market. should you take a bite after earnings or leave it on the shelf? find out in cramer's exclusive with its ceo. and later, spice of life? there's more to come from the floor of the grocery store. cramer spotted a tasty play hiding in plain sight. could the recent pullback be the coupon you need to buy? stick around to find out if it's time to go shopping. all coming up on "mad money."
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don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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yesterday i gave you a big speech about buying the pullbacks. you've got to be there. even though every time an actual pullback arrives, your first instinct is to sell, possibly to panic. in this forgiving market, though, you need to resist that urge and start putting your money to work.
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take this dip in hain celestial, down 2.3% off a quarter seen not good enough. hain is a host of brands, earth's best, garden of eden and the greek gods. you see them all behind me. we've liked this one for a long time. lately the stock has had a rough time. it's now about 16 points off the highs. so last night hain reports and while the company earns 72 cents a share, its revenues came in below expectations of some. on top of that, hain lowered its full-year revenue forecast. that's the kind of thing that sounds bad. but the company's organic revenue growth guidance was unchanged. from a pair of recent acquisitions and some one-time items like rationalizing the frozen food business in the uk. 16 brands were up double digits in the quarter. greek god's yogurt up. earth's best up 15%. celestial seasoning seeing the
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strongest tea numbers ever. should you buy in this weakness even though the stock's had trouble gaining traction of late? given us 211% gain and the underlying trend seems strong enough that hain should be able to return to its long-term upward trajectory. but do not take it from me. let's talk to irwin simon, the founder, chairman, president and ceo of hain celestial to learn more about where the company is headed. welcome back to "mad money." >> hey, jim, how are you? >> sit down. let's go over this. now, this was a quarter where for the first time it was -- i want to say that going into it was marred by controversy. there was a barron's article i have out here, celestial's unnaturally good share price. there were a couple of what i regard as first class raids down as if someone knew something. if there was anything to find out, you've always been candid. so let's set the record straight. this barron's article said you might not have the organic growth, said that the competition may be too fierce. i didn't see the negatives that
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barron's pointed out and developed in this quarter. >> so let's come back and start from the beginning. number one, i've always said this, eating healthy is not a fad, not a trend, it's going to become a bigger part of life. 70% of health care costs come from self-infliction. the uk is from a country size obesity is on a major rampart there. the usda came back and changed in regards to meals in schools and kids snack and et cetera. whole foods has 374 stores, you've had walter on, their growth, they're going to 1,000 stores, walmart, amazon, et cetera. number one, we are one of the largest natural organic food and personal care companies in the u.s. and the world. our last nielsen numbers that came out, you know, we're growing at 10% on retail stores. you know, in our quarter last night, our growth was up 25%, organic growth is up 9.4% in the u.s.
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we had hurricane sandy in there, stores were closed for a week. our margins improved dramatically. 72 -- >> at a time when everyone else in the food business is telling me that food costs went up. >> food costs went up. we earned 72 cents. our earnings per share were up 55%. so i guess what else can we do to make our shareholders happy? and i think our long shareholders will be happy. the barron's article, hey, when you come back -- >> i had to bring it up. >> sure. >> it hammered the stock. >> is there trouble in tea land? of course there's not trouble in tea land. is there going to be competition coming after us? absolutely, and i've said this before, indra nooyi, she's doing a great thing. >> pepsico. >> to bring more healthier foods. i can't change the way the world eats, you know, with hain itself. every food company got to get in there and change the way the world eats. listen, we're in a great space. how many companies have 16 brands that are up double digit? greek yogurt. hey, you know, that's all i've
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been told we're losing share. up 39%. celestial seasonings, cold weather and flu and the snowstorm coming this weekend and consumers in the store, it's had its best quarter ever. you know, our earth's best baby food and, yes, there's other organic baby foods up 15%. listen, super bowl, $1 billion worth of potato chips sold during the super bowl. garden of eden, our terra chips, sensible portions. we really are in a great spot. listen, we've done a lot of acquisitions. >> right. now, and rob burnett, the ceo of hain daniels talks about how you suffered a bit from lower sales of christmas condiments and seasonal items from the new premier business. >> and one of your questions asked of me earlier was, listen, is there issues there? you can do all the due diligence you want before you do an acquisition. once you own it, there's things you find out. >> right. >> and with the uk business, it's a great business. what we decided very quickly in the uk because we got a lot
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going on there. there are skus that are marginally -- skus that really don't make us money. they're negative margins on them. and with that, get rid of them right away. >> and you've always done that. this is not anything new in terms of when you've made acquisitions, you very quickly corrected what didn't work. >> here's the big thing. in the uk, we're going to come out with gluten free. we've introduced greek yogurt. we're all over this meat-free vegetarian business in the uk. why have your guys focused on skus or products we're not making money on? >> right. these guys are saying you bit off more than you can chew. >> you know what? i don't -- we didn't bite off more than we can chew. with any acquisition, there's challenges, and any time you've bought an acquisition and there's not something you find after you buy it, then, you know, i'd like to see those acquisitions out there. we've done 35 acquisitions. >> are you out of them, though? >> of course not. you know what? listen. we've done a great job on greek gods that have gone to $100 million.
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blueprint. juicing is on fire right now, a category and this is a company that's on fire. >> and that was a new acquisition. >> we closed on that in december. so, jim, to come back and say where is hain going? we're in early stages. today the growth within amazon as you heard me say, the mass market, the growth within our supermarket business, the growth within a whole foods, the growth internationally, our canadian business, it was up high single digits, european business with europe having all the trouble it is. and, you know, up low single digit numbers. high single digit numbers too. but to come back and, you know, new products, innovation, packaging. you know, today this is 40% in regards to baby food sales. i'm excited. i really am excited. >> carl icahn your big shareholder happy? >> listen, carl has made a lot of money and he's been very supportive. and, you know, we've worked with carl and it's great to have a shareholder that's very supportive. >> okay. one last question, do you think
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that there is an envy? what is it that is making the target? because i mean a lot of companies, whole foods stock when i overlay it on hain, they're pretty much the same. >> well, if anything, their multiple is higher. there's a lot of other guys with multiple or higher and i've come back and seen some restaurant chains that have some healthy connotations and seeing how their stock has moved up. and i'd love to have their multiple. listen, number one is we put our heads down, we focus on healthy food, changing the way america and the rest of the world eats. and the proof will be in the numbers and that's it. and, again, not many companies are growing at 25%, organically, high single digits, low double digits. >> none in your category. >> with margins growing the way they are and our profits up 55%. so -- >> right. >> i'm excited about what we're doing. >> i'm glad you took it head on because that's the way you are. you've always been straight, that's how we made the big money
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with your stock. you've been straight with our viewers. you're straight now, this is not a fad. >> not a fad, not a trend, will be around a long time. >> thank you. chairman, president, and ceo of the hain celestial group. you know i think it's inexpensive, it's got the great growth path. i heard everything today i wanted to hear. i hope you did the same. after the break, try to make you some more money. coming up. spice of life, there's more to come from the floor of the grocery store. cramer spotted a tasty play hiding in plain sight. could it be the coupon you need to buy? stick around to find out if it's time to go shopping.
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♪ i keep telling you you have to -- >> buy, buy, buy. >> not -- >> sell, sell, sell. the pullbacks. but some of these pullbacks are more buyable than others. they're machines that consistently trade higher, year after year after year. but every now and then, you get a glitch, usually earnings related, and the stock sells off. that's your chance to buy, because the glitch will be resolved sooner rather than later and you will almost never get a better buying opportunity. with some stocks, these earnings driven selloffs are the only time you can get in a good price, only time. since any other time you'd be buying when the shares are just chugging higher. and we don't chase on "mad money." we bid, we don't chase.
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which brings me to one of my old faves. it brings me to mccormick, mkc, the king of spices. mccormick has a huge market share and pretty much every supermarket in the united states. kind of like kleenex, right? i don't know, i don't buy the other guys. the other guys, i don't know, are they any good? it's also got big presence in europe, middle east, africa, rising presence in the rest of the world, emerging markets. if you're looking to buy spices, herbs, marinades, seasonings, mixes, you're probably buying mccormick's because they practically own these companies. if you buy private label, you're probably buying mccormick too. 50% of domestic market for private labels spices and seasonings. they're the only game in town. they're like a modern version of the old dutch east india company. except where you mean labor practices, meaning they can't flog you for talking back to the boss or, of course, execute you for taking a sick day. mccormick the company has a very consistent track record and a great story as consumers move away from packaged goods and do
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more home cooking, which is what they're doing. but the reason i'm talking to you about this one tonight is because of mccormick, the stock. not the spice. this is a name, not unlike its neighbor team the baltimore ravens, that has slowly, steadily powered its way higher. but unlike the ravens, this team has been around for decades now. mccormick's a machine, solid 2.15% yield. this stock has given 113% return including dividends versus a 22% in terms of the s&p 500. in turmoil does pretty well. pretty darn good considering five years ago was close to when the market peaked. and when you take that out of consideration, a double in five years from a safe, consistent food name. come on, that's impressive. in the last ten years, mccormick is up 175%, but its given you a 241% gain with reinvested dividends. i always tell you to do that, well over triple versus 114% for the s&p. and in the last 20 years, the stock is up 369% if you reinvest your dividends.
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you've added 615% return. that's more than a seven-fold increase, substantially better even than the 405% return in the s&p 500 over the same 20-year period. i like that because it's got much less risk than the s&p 500, and more reward. these gains weren't made in the brief periods of time where the stock spiked. mccormick worked its way higher. of course, the problem with the stock that seems to be on a neverending rally is that it's really hard to find a good entry point. there's almost never a time you don't feel like you're chasing. but i've got a solution to that problem because i think you're getting a terrific entry point right here, right now with mccormick at $60 and change, down four points from its high where the stock was trading before it reported earnings two weeks ago on january 24th. mccormick's quarterly report was widely viewed as disappointing. the company missed the street's estimates by 3 cents, off a $14 basis. it's revenues, shockingly, shockingly according to the analysts, worse than expected. then the full-year guidance for
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2013 was below what wall street was looking for. they guided down, as a result the stock was hammered mercilessly, $66.59 to $62.37, within a 24-hour period. it was a vicious mauling. two weeks passed, mccormick still down in the dumps having only rebounded 38 cents from the lows despite the market being robust the last couple of days. i know some of you are probably thinking genius idea, cramer. why the heck should we buy a stock that just missed the numbers when there's so many companies out there that have beat them and beat them handily? maybe mccormick's 20-year run of outperformance has finally come to an end. that's what the naysayers are saying to me. wrong. you have to buy mccormick when you get this pullback. the stock sells off when people think spice is over. mccormick's done. spice has staying power. ask the hudson bay company. marco -- >> polo. >> long-term, this business has been a winner for centuries. let's look at the last few years, though. i'm not so worried about the
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quarter, because mccormick sells off earnings reports, and continues to work higher. look back at the last seven quarters, mccormick sold off after five of them. after reporting the second quarter of 2011 it fell, but not that much, but $1.43, 2.8% thrashing. if you bought the stock then, you have a 31.5% gain including reinvested dividends. granted, the latest pullback is substantially larger than anything we've seen in recent times. but it fits the pattern of the stock selloff after earnings and then rebounds like clockwork. even in 2005 when mccormick took a disastrous wrong side bet on rising vanilla costs and the stock got crushed, falling from $39 to $30. in hindsight that selloff proved to be a terrific time to start buying, and that was a much more problematic selloff than the one we just had. so mccormick says to buy. beyond that, though, i'm not worried about the latest
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quarter. bthe biggest, highest margin business, the american consumer, took a nasty 1% hit from product shortages and supply disruptions supplied by hurricane sandy. hurricane sandy did hurt companies. 1% may not sound like must, but mccormick missed the streets revenue by .3%, this is a huge part of the business. plus, while the volume numbers weren't so hot in the quarter, management has indicated that shipments to retailers have been quite strong year-to-date in 2013. i think the problem goes away. how about mccormick's disappointing guidance for 2013? what do you make of that? the thing to keep in mind is that these numbers were largely driven by nonoperational factors. for example, good example. mccormick expects the earnings per share to take a 4% hit from an increase in noncash pension expense, something that other food companies like hershey, con-agra, have started to exclude.
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it's possible they were penalized too harshly. it's not an apples to apples comparison. the company expects to get hit with a higher tax rate. and the underlying earnings. food stock for little risk, historically, not too shabby. meanwhile, mccormick is an innovative company, 25 new products launched last month. a ton of free cash flow. stock isn't cheap, selling for 19.7 times 2013 earnings. it's never been cheap, ever that i can recall. after its latest pullback, it's probably as cheap as you're going to get it. and that's what makes it a buy. here's the bottom line, all right? mccormick is a terrific company that dominates the spice business with a stock that has a fabulous track record of moving slowly but steadily higher. and when mccormick sells off after earnings like it did two weeks ago, that's a fabulous buying opportunity for the spice-a-mid.
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the stock tends to spring back like clockwork. and you don't want to wait for the earnings news. it's best to get these spices not when they are posh -- but when they are scary to reference two of my favorite spice girls, not that i have any unfavorites. which is a lot easier than working in parsley, sage, rosemary, and thyme. let's go to kiran in maryland. >> caller: jim? >> yes, kiran. >> caller: this is kiran from baltimore, home of super bowl champions. >> oh, congratulations, man. congratulations. i like that flacco because he's from jersey. what's up? >> caller: i want to know what's going on with chipotle, reported yesterday. i like the stock, but it is lots of ups and down. >> no, i think chipotle is finally getting it right. they had already guided down. so they guided down again, then they guided down kind of a third time, but it was a soft guide down. by time you got there, everyone knew it was wrong. now they can raise the price and that says to me that chipotle is fine. i also like the fact that management is keeping by its
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principles, never wavering. mccormick is coming into season. if you have good taste, consider mkc on a pullback. opportunities like this, they're just very rare. don't move. "lightning round" is coming up next.
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something that has a much larger bearing on you in the stock market as a whole. >> let cramer be your guide. your sounding board. >> i'm having a hard time with my favorite stock. >> i know you can beat these professionals. >> and your coach on the road to financial independence. "mad money" weeknights on cnbc. it is time -- it is time for the "lightning round" on cramer's "mad money." rapid-fire calls, you say the name of the stock, i tell you whether to buy or sell. play until you hear this sound and the "lightning round" is over. are you ready skidaddy? time for the "lightning round" on cramer's "mad money." starting with dan in texas. dan? >> caller: boo-yah, jimmy, this
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is danny mac in dallas, texas. i had to run the air-conditioner in the house today. >> wow, i'm liking that. we got a big storm coming. all anybody can talk about. what's up? >> caller: i'm calling you about coin star. >> too controversial for this guy. it's a football stock. >> don't buy. >> i call these stocks, it means up three, down three, up three, down three. kind of like green mountain coffee. i can't get a line on it. steve in florida. steve? >> caller: hello? >> hi, steve, you're up. >> caller: okay. b-b-b-boo-yah. >> i'm liking that completely. >> caller: i got blackrock kelso. >> i don't know blackrock kelso. no, i don't know it. i've got to do homework on it. let's go to john in washington. john? >> caller: boo-yah to the all-seeing, all-knowing great jim cramer. >> well, thank you. >> caller: you're the best, baby. you're entertaining and informative just like you say. >> i sure try. >> caller: i want to give your
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eagles a kudos for picking that oregon coach. he's a winner. >> chip kelly, i like him. adam schefter breaking that story with mort, what's up? go ahead. >> caller: dvax. >> we said it was a spec, it is coming back, it's now up a dollar from where it blew up. i want to stay long dvax. barbara in illinois, please, barbara? >> caller: yes, sir. >> go ahead, barb. >> caller: jim, i have a question about cognizant technology. >> oh, i like that. i like it a lot, but you know what? i saw an opportunity today, bill mcdermott's s.a.p. he's co-ceo, down from $83.60 to $80. pull the trigger, buy some s.a.p. let's go to bob in nebraska. bob? >> caller: jim, husker big red boo-yah to ya. >> nice. >> caller: i'm wondering about your position on lockheed martin.
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>> i like lockheed martin. i almost called him my friend, this show is not about friends, dave cote, my neighbor, did say earlier today, the honeywell ceo would rather see automatic u.s. spending cuts than nothing. that would hurt lockheed martin. i do like the stock. let's go to richard in iowa. richard? >> caller: yeah. >> go ahead, richard. >> caller: how are you doing today? >> couldn't be better. how about you? >> caller: oh, just fine. i'd like to know a little bit more about zoetis. >> animal health, pfizer spinoff. we like pfizer, we like zoetis. by the way, let me throw in i like boise cascade, saw those guys this morning. hard-working people. let's go to gary in new york. gary? >> caller: what up, jim, bringing you a big oswego state boo-yah. >> yes. yes. how about those college kids watching anything other than this? >> caller: i'd like to invest in blackberry -- >> you're not investing, it's a
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trade. below $15, i'll pull the trigger, up here, i'm in the neutral zone, and i don't like to get into the neutral zone because you know what happens. okay. let's go to jerry in florida. jerry? >> caller: hey, hello, mr. cramer. >> yeah, yeah. >> caller: big west coast of florida boo-yah to you, sir. >> i'm giving you a panhandle golden great '98, lived on magnolia -- what's up? >> caller: you like it. okay. i'm asking about molex. >> electric connectors. i prefer avnet. take molex if you insist. let's go to jim in california. jim? >> caller: jim, boo-yah. thanks for teaching me how to make "mad money." right now i'm in the house of pain with edwards life sciences. >> no, you're okay. >> buy, buy, buy -- >> you don't have to crack open the chest cavity with that thing. it's up and down up and down. it's a stock that has a lot of controversy with it. but i do like it. i want to go to wally in illinois. wally? >> caller: b-b-boo-yah, jim. how you doing? >> what's going on? >> caller: i'm trying to find
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out about sky works solutions. >> now here's the deal. sky works solutions got oversold, but it is a component play. component plays are just trades. we liked it lower. we take and ring the register now. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. coming up -- you plan, you play, you try to be perfect. but can your strategy stand up to cramer's test? call, e-mail or tweet @jimcramer to find out if your portfolio has what it takes on "am i diversified?" [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box.
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that's up to 76 percent below online providers and only at officemax stores! with multiple lacerations to the wing and a fractured beak. surgery was successful, but he will be in a cast until it is fully healed, possibly several months. so, if the duck isn't able to work, how will he pay for his living expenses? aflac. like his rent and car payments? aflac. what about gas and groceries? aflac. cell phone? aflac, but i doubt he'll be using his phone for quite a while cause like i said, he has a fractured beak. [ male announcer ] send the aflac duck a get-well card at getwellduck.com.
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the market's been red hot of late but we must never be so complacent to risk putting all of our stocks in one particular sector. that's courting trouble, and that's why today we're playing am i diversified. you call me, tell me your top five holdings. i tell you if maybe you need to
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do a little -- >> sell, sell, sell -- >> buy, buy, buy. >> we're starting with a tweet tonight. someone went to @jimcramer on twitter. it's the real dustin 24 as opposed to the fake dustin 24, probably someone else who writes am i diversified? mohawk industries, mastercard, fxi, china index, goldman sachs, and gilead. we've got a financial in goldman sachs, i'm regarding mastercard as a financial. i'm saying that's a twofor. be careful. ishares is china. we'll have to get rid of mastercard because my charitable trust owns a big position in goldman sachs, i think that goes higher. and what we will add is a diversified industrial and i'm picking timken. tkr, the steel company that we visited in ohio not that long ago. all right. let's go to ian in california.
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ian? >> caller: hey, jim, criminal minds booyah to you. how are ya? >> i totally agree with you boo-yah right back. >> caller: are you ready for the portfolio? >> yes. >> caller: okay. "v," visa, aapl, apple, gld, gold, fb, facebook, pm phillip morris. jim, am i diversified? >> okay. phillip morris, the international version of marlboro, facebook at 28, 29, that's a good stock. let's call it an internet social media play. the gold -- you know, there's the gold standard, it's gold. visa is a financial that's known really as a paper to plastic play and apple's tech. we've got tech, tobacco, we have social media, we have gold, and we have a financial. bingo. ♪ hallelujah >> no changes needed. how about we go to kathy in illinois? kathy? >> caller: hi, jim, this is kathy in illinois, home of the
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world famous chicago white sox. these are top five holdings and we wonder if you think we should replace any of them. >> let's go to work. >> caller: apple, aapl, caterpillar, c.a.t., home depot, hd, ford, "f," and timken, tkr. >> speak of the devil. okay. home despot, bought some today, stephanie link and i think it's a terrific buy. timken, it's the steel company, we just went over that. apple, computer, caterpillar, big machinery company. ford motor, auto. should timken and c.a.t. be -- i'm going to say it's okay because timken has enough aerospace that it's all right. we have steel, machinery, tech, retail and auto. i'm going to say that's fine. all right. now we're going to chris in maryland. home of the ravens. chris? >> caller: boo-yah, cramer, from maryland. >> congratulations on that team of yours. what's up? >> caller: okay.
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by the way, i love your show and i've been watching you since 2006 when i was in college and i can't get enough of your show. >> i'm loving that. we see them in college, we take them all the way through and eventually they become fabulously -- fabulous traders or investors. go ahead. >> caller: okay. i've got ford, ticker symbol "f," green mountain coffee, ticker gmcr, i've got ebay, yelp, and marathon petroleum corporation, mpc. >> oh, okay. i have to say yelp because yelp reported an okay, not great quarter and i have to say ew for green mountain. it was also not great. but that's okay. that's after the bell stuff and we're going to go back and look at the conference calls. we've got green mountain, had some this morning, i love it but it doesn't matter. herb greenberg knows that one better than i do. let's call it coffee, we've got oil in marathon, we have yelp, social media, ford auto, and we have ebay, which is actually a
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financial. it's paypal. and that, again, is terrific -- well played to all, "mad money's" back after the break. keep up with cramer all day long. follow @jimcramer on twitter and tweet your questions #madtweets.
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♪ you've got to have faith. i don't believe in faith-based investing. i don't want to own a portfolio of do-gooders.
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there's a lot of do-gooders who become no good next quarter. i'm talking about having faith in certain ceos because they have gotten right in the past, they deserve the benefit of the doubt for the good works they've done over many years in the job and many good quarters, if not years under the belt. prime example, bob iger at the walt disney company. a good quarter, not perfect, didn't provide the blueprint people were looking for for that purchase of lucas films for $4 billion. plus, there were concerns when it came to the future of espn, he told you not to worry about them. he said that espn, one of the most amazing properties in the world because you can't dvr the stuff with any effectiveness, would do just fine in 2013. given it's so responsible for the earnings power, this lack of clarity stunned investors and traders alike. and so you can imagine what happened -- >> sell, sell, sell, sell -- >> the stock traded as high as $53 before the call, plummeted to $47 as analysts, traders, and investors showed remarkable lack
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of faith in iger's assurances. i thought the selloff was insulting to iger and assured people this would be a tempest in a teapot and an investable one at that. i told him that too because i was astonished this man who has done so much good at disney didn't get the benefit of the doubt. fast forward last night, the stock is up almost nine points. a quarter that literally answers every single objection and then some. first he lays out a multi-year vision for lucas films, including multiple star wars iterations, other star wars derived properties. derivative movies, you know, like how they spin off characters and stuff? you can tell this deal is sounding more and more like marvel too. and don't forget that marvel derived "iron man 3" sans me and my cameo role from "iron man 1" will be out soon. second espn instead of being soft, actually looks to be incredibly well set up for terrific growth in 2013.
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maybe even better as the year goes on. it is true that monday night football was a bit of a downer in the last quarter of the year, in part because luck of the draw. they had some dud contests. eagles. you've got to take that risk in sports programming now and then. finally, disney has fabulous upside in theme parks, courtesy of new rides. i still believe there's a ceo quotient that has to be applied to that p/e or price to earnings multiple to get through the tougher times and the disappointments. iger has the highest faith to stock price ratio i know of. he's got good taste in birthdays while we're at it. we both share february 10th as the day of our birth. a worthless factoid that's worth pointing out if only because we're on the eve of the big event and presents are always welcome. stay with cramer. it's a brutal, full contact sport. >> from the time the whistle blows -- >> traders bracing for what could turn out to be a wild session. >> to the last play of the game.
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>> markets absolutely getting hammered today. >> i know it's not easy, but i promise to keep fighting for you. >> jim cramer, leveling the playing field for all. >> the road is a tough one, but the payoff can be your greatest win of all. >> join "mad money's" training camp, weeknights.
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